Boeing is cutting production of 737 Max jets. Following two crashes since October, Boeing has slashed its monthly production of its aircraft by 20% and is likely to produce only 42 a month instead of 52. This is part of the company’s adjustment in the 737 production system that aims to focus on software certification and returning the MAX to flight.
The analysts expect the production is likely to weigh on shares of the company. But, so far Boeing’s shares have held up relatively well after initially dropping to more than 10% in mid-March following the crash of an Ethiopian Airlines 737 Max 8. This second 737 crash in six months had led to a grounding situation for the aircraft.
At the time, Boeing did not feel the need to cut production. But the crashes also led to an evaluation as well as fixing of the aircraft’s software system, for which it’s likely to seek approval from FAA and other international evaluators in the coming weeks. This means that the grounding situation may well extend till June.
BA saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 09, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 32 instances where the indicator turned negative. In of the 32 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on April 04, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BA as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for BA entered a downward trend on April 25, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BA's RSI Indicator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 14 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BA advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
BA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (6.610). P/E Ratio (0.000) is within average values for comparable stocks, (35.202). BA's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.959). BA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.017). P/S Ratio (1.328) is also within normal values, averaging (4.607).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of jetliners, aircraft and related products
Industry AerospaceDefense